The Effect of Seven Marketing Activity Levers (7As) and Expectations of Service on Hotel Service Performance in Thailand
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Published:
Sep 19, 2019
Keywords:
Marketing activity levers (7As), expectation of service, service performance
Main Article Content
Abstract
In the service sector of Thailand, evidence indicates that hotel businesses make the highest contribution to gross domestic product. To ensure that this growth is sustainable, hotel businesses should consider marketing activities as crucial tools. The purpose of this research was to observe the effects of seven marketing activity levers (anticipation, adaptation, alignment, activation, accountability, attraction, and asset management—7As) and service performance. Data were collected using a questionnaire from 255 hotel businesses in Thailand (128 from 3-star hotels and 127 from 4- to 5-star hotels). The data were analyzed using Confirmatory Factor Analysis to measure the impact of the 7As on hotel service performance. Structural Equation Modelling was also used to test the usefulness of a 7As model that had been developed from relevant studies. The results revealed differences in the relevance of the 7As between 3-star hotels (medium expectations) and 4- to 5-star hotels (high expectations). These findings indicate that hotel managers should organize suitable marketing activities relevant to a hotel’s rating. The findings may also be compared to other relevant industries so that generalizations may be considered.
Article Details
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Research Articles
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References
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Aaker, D., Kumar, V., & Day, G. (2001). Marketing research. New York: John Wiley & Sons.
Anderson, J., & Gerbing, D. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin. 103(3), 411–423.
Anaza, N., & Rutherford, B. (2012). How organizational and employee-customer identification, and customer orientation affect job engagement. Journal of Service Management, 23(5), 616–639.
Ballantyne, D., & Varey, R. (2008). The service-dominant logic and the future of marketing. Journal of the Academy of Marketing Science, 36(1), 11–14.
Baker, M. (2014). Marketing strategy and management (5th ed.). New York: Macmillan International Higher Education.
Beckman, C., Haunschild, P., & Phillips, D. (2004). Friends or strangers? Firm-specific uncertainty, market uncertainty, and network partner selection. Organization Science, 15(3), 259–275.
Board of Investment of Thailand. (2017). A guide to the board of investment. Retrieved from https://doi.org/ www.boi.go.th
Boomsma, A., & Hoogland, J. (2001). The robustness of LISREL modeling revisited. Structural equation models: Present and future. A Festschrift in honor of Karl Jöreskog, 2(3), 139–168.
Chand, M., & Katou, A. (2007). The impact of HRM Practices on organizational performance in the Indian hotel industry. Employee Relations, 29(6), 576–594.
Chi, T., Kilduff, P., & Gargeya, V. (2009). Alignment between business environment characteristics, competitive priorities, supply chain structures, and firm business performance. International Journal of Productivity and Performance Management, 58(7), 645–669.
Eisenhardt, K., & Martin, J. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21 (10–11), 1105–1121.
Fernández, M., & Bedia, A. (2004). Is the hotel classification system a good indicator of hotel quality? An application in Spain. Tourism Management, 25(6), 771–775.
Forsgren, S. & Franchetti, C. (2004). The marketing role of unique concepts for hotels in Sweden. Goteborg University.
Gilmore, J., & Pine, B. (2002). Customer experience places: The new offering frontier. Strategy & Leadership, 30(4), 4–11.
Grewal, R., & Slotegraaf, R. (2007). Embeddedness of organizational capabilities. Decision Sciences, 38(3), 451–488.
Hair, J., Black, W., Babin, B., Anderson, R., and Tatham, R. (2006). Multivariate data analysis. (Sixth Edition). NJ: Prentice Hall.
Hall, R. (1992). The strategic analysis of intangible resources. Strategic Management Journal, 13(2), 135–144.
Hardy, J. (2014). Competitive marketing strategy: A best practices examination of convention hotels in San Francisco. British Journal of Psychiatry, 205(1), 76–77.
Homburg, C., Hahn, A., Bornemann, T., & Sandner, P. (2014). The role of chief marketing officers for venture capital funding: Endowing new ventures with marketing legitimacy. Journal of Marketing Research, 51(5), 625–644.
Homburg, C., & Pflesser, C. (2000). A multiple-layer model of market-oriented organizational culture: measurement issues and performance outcomes. Journal of Marketing Research, 37(4), 449–462.
Homburg, C., Wieseke, J., & Bornemann, T. (2009). Implementing the marketing concept at the employee–customer interface: The role of customer need knowledge. Journal of Marketing, 73(4), 64–81.
Homburg, C., Workman, J., & Jensen, O. (2002). A configurational perspective on key account management. Journal of Marketing, 66(2), 38–60.
Johnson, J., Sohi, R., & Grewal, R. (2004). The role of relational knowledge stores in interfirm partnering. Journal of Marketing, 68(3), 21–36.
Kaehler, C., Busatto, F., Becker, G., Hansen, P., & Santos, J. (2014). Relationship between adaptive capability and strategic orientation: An empirical study in a Brazilian company. I - Business, 6(1), 1–9.
Kayo, E., Kimura, H., Martin, D., & Nakamura, W. (2006). Ativos intangíveis, ciclo de vida e criação de valor [Working assets, life cycle, and creating value]. Revista de Administração Contemporânea, 10(3), 73–90. https://dx.doi.org/10.1590/S1415-65552006000300005
Kohli, A., & Jaworski, B. (1990). Market orientation: The construct, research propositions. Journal of Marketing, 54(2), 1–18.
Kotler, P., & Armstrong, G. (2013). Principles of marketing. World Wide Web Internet and Web Information Systems, 42, 785-795.
Kotler, P., & Keller, K. (2003). Marketing Management: International Edition. Prentice Hall. New Jersey.
Likert, R. (1961). New Patterns of Management. Retrieved from https://search.ebscohost.com/login. aspx?direct=true&db=psyh&AN=1962-05581-000&lang=ja&site=ehost-live
Martin-Rios, C., & Pasamar, S. (2018). Service innovation in times of economic crisis: The strategic adaptation activities of the top E.U. service firms. R and D Management, 48(2), 195–209.
Masdek, N., Aziz, Y., & Awang, K. (2011). Impact of selected organizational characteristics on psychological and behavioural outcomes of hotel frontline employees. Pertanika Journal of Social Science & Humanity, 19(2), 369–383.
Molina, J., & Ortega, R. (2003). Effects of employee training on the performance of North-American firms. Applied Economics Letters, 10(9), 549–552.
Morgan, N., Vorhies, D., & Mason, C. (2009). Market orientation, marketing capabilities, and firm performance. Strategic Management Journal, 30(8), 909–920.
Moorman, C., & Day, G. (2016). Organizing for Marketing Excellence. Journal of Marketing, 80(6), 6–35.
Moorman, C., & Rust, R. (1999). The Role of Marketing. Journal of Marketing, 63, 180–197.
Neuman, W. (2006). Analysis of qualitative data. Social Research Methods: Qualitative and Quantitative Approaches, 457-489.
O’Neill, J., & Davis, K. (2011). Work Stress and Well-being in the Hotel Industry. International Journal of Hospitality Management, 30(2), 385–390.
Pervan, M., & Višić, J. (2012). Influence of firm size on its business success. Croatian Operational Research Review (CRORR), 3, 213–223.
Pine, R., & Phillips, P. (2005). Performance comparisons of hotels in China. International Journal of Hospitality Management, 24(1), 57–73.
Ramaswami, S., Srivastava, R., & Bhargava, M. (2009). Market-based Capabilities and Financial Performance of Firms: Insights into Marketing’s Contribution to Firm Value. Journal of the Academy of Marketing Science, 37(2), 97–116.
Saboo, A., & Grewal, R. (2013). Stock market reactions to customer and competitor orientations: The case of initial public offerings. Marketing Science, 32(1), 70–88.
Sampieri, R., Fernández Collado, C., & Baptista Lucio, P. (2010). Metodología de la investigación (Vol. 3). México: McGraw-Hill.
Schindehutte, M., & Morris, M. (2001). Understanding strategic adaptation in small firms. International Journal of Entrepreneurial Behavior & Research, 7(3), 84–107.
Sexton, D., Sen, K., & Gorti, V. (2010). Determining marketing accountability: applying economics and finance to marketing. Journal of Marketing Trends, 1(October), 39–45.
Stewart, D. (2016). Marketing Accountability : Defining expectations and measuring outcomes, Open Journal of Business and Management, 2(03), 163–165.
Sun, S., & Lu, W. (2005). Evaluating the performance of the Taiwanese hotel industry using a weight slacks-based measure. Asia-Pacific Journal of Operational Research, 22(4), 487–512.
Tawaha, M. (2015). The effect of alignment strategy on organizational performance in Jordanian banks registered in Amman stock exchange up to 2012. International Journal of Business Administration, 6(3), 94-101.
Teece, D., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.
Tellis, G., Prabhu, J., & Chandy, R. (2009). Radical Innovation across nations: The preeminence of corporate culture. Journal of Marketing, 73(1), 3–23.
Tefera, O., & Govender, K. (2015). Hotel grading, service quality, satisfaction and loyalty – Proposing a theoretical model and relationship. African Journal of Hospitality, Tourism and Leisure 4 (Special ed.), 1–17. Retrieved from https://www.ajhtl.com
Tourism Authority of Thailand (2019). Accommodation. Retrieved from https://thai.tourismthailand.org/home
Tsai, C., Lu, Y., & Yen, D. (2012). Determinants of Intangible Assets Value: The Data Mining Approach. Knowledge-Based Systems, 31, 67–77.
Tseng, C., Kuo, H., & Chou, S. (2008). Configuration of innovation and performance in the service industry: Evidence from the Taiwanese hotel industry. Service Industries Journal, 28(7), 1015–1028.
Turner, R., & Carlson, L. (2003). Indexes of item-objective congruence for multidimensional items. International Journal of Testing, 3(2), 163–171.
Verhoef, P., & Leeflang, P. (2009). Understanding the marketing department’s influence within the firm. Journal of Marketing, 73(2), 14–37.
Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic Management Journal, 5(2), 171–180.
Wieseke, J., Ahearne, M., Lam, S., & Van Dick, R. (2009). The role of leaders in internal marketing. Journal of Marketing, 73(2), 123–145.
Winston, C., David, J., Kwok, W., & Sharp, D. (1998). A review of construct measurement issues in behavioral accounting research. Journal of Accounting Literature, 17, 137.
World Travel & Tourism Council. (2018). Travel & tourism: Economic impact 2017 United States. WTTC. Retrieved from https://www.wttc.org/-/media/files/reports/economic-impact-research/countries-2017/unitedstates2017.pdf
Zou, S., Andrus, D., & Wayne N. (1997). Standardization of international marketing strategy by firms from a developing country. International Marketing Review, 14(2), 107–123.